‘This Is Code For A Tax Increase’: Gavin Newsom Revamps Call For Oil Industry ‘Price Gouging’ Penalties

Governor Gavin Newsom (D-CA) claimed his proposal was rejected “price gouging penalty” For oil Residents of the area would not be affected by these companies. California.

The proposalThe bill, which was introduced by Nancy Skinner (D), at the end last year, would compel Oil companies must reduce their profits in order not to be subject to a civil fine from the California Energy Commission. Neither a penalty size nor an official profitability threshold appears in the legislation, which would also expand the agency’s authority to obtain information regarding price policies. Newsom claimed this in a Facebook post video The oil industry had spread myths about the legislation and tried to refute them.

“This is a price gouging penalty, and Californians won’t pay a cent for it. Only Big Oil will if they price gouge you at the pump to line their pockets,” In response to the claim, he stated that the legislation would function as another gas taxes. “The penalty is about preventing price hikes from happening in the first place so money stays in your pockets. But if Big Oil companies violate the law by charging you excessive profits, they’ll be forced to pay the penalty, which will be refunded right back to you.”

Newsom, however, argued that the gas tax should be temporarily suspended to ease price pressures. “no guarantee” Oil companies would “pass down the savings” Customers “Suspending the gas tax would only give oil companies a huge tax break,” He went on. “They’d collect even more profits while putting critical improvements to our roads and bridges, our infrastructure, at risk.”

California residents currently have the highest gas taxes in America. Residents can expect to pay almost $1.00 in state taxes, fees and taxes beyond the Federal Excise Tax of 0.24 cents per Gallon. data American Petroleum Institute. According to the American Petroleum Institute, the state also has the second highest gas prices at $4.53 per g, behind Hawaii. This is higher than the national average of $3.51 per g. data AAA

Newsom also rejected the argument that higher fuel prices are partly due to high taxes. “When gas prices started skyrocketing in August and September, our gas tax and fees hadn’t changed a single cent. Not a cent. Big Oil won’t say why they suddenly started charging Californians a record $2.61 more per gallon than people in other states, but we know it resulted in record profits,” He made a comment. “Our proposal includes some of the nation’s most aggressive transparency measures as well, so we can get answers and prevent it from happening again.”

Democratic legislators in the state are opposed to measures that would temporarily pause The gas tax. Kevin Kiley, an Assemblyman (R), introduced a bill last summer that would have stopped the tax for six-months. However, a party-line vote rejected the measure. James Gallagher (R), California Assembly Minority leader rebutted Newsom posted the following social media video. “This is code for a tax increase,” He contended. “One that would probably lead to long lines and higher gas prices.”

*As an Amazon Associate I earn from qualifying purchases